California and Virginia Join IAIS International Information Exchange Agreement
Aug 29, 2014
Peter Braumüller, Chairman of the Executive Committee of the International Association of Insurance Supervisors (“IAIS”), announced yesterday, August 28, 2014, that the insurance supervisors of California and Virginia have joined an international supervisory cooperation and information exchange agreement.
There are now 42 jurisdictions admitted as signatories to the IAIS Multilateral Memorandum of Understanding (“MMoU”), representing nearly 60 percent of worldwide premium volume.
“California is pleased to be one of the lead states in the United States approved by the IAIS, after a rigorous review, to participate in the Multilateral Memorandum of Understanding regarding sharing of information between insurance supervisors,” said California Insurance Commissioner Dave Jones. “Being able to share critical financial and other information with other financial supervisors will enhance California’s ability to protect consumers of insurance.”
The MMoU is a global framework for cooperation and information exchange among insurance supervisors. It sets minimum standards to which signatories must adhere, and all applicants are subject to review and approval by an independent team of IAIS members. Through membership in the MMoU, supervisors are able to exchange relevant information with and provide assistance to other signatories, thereby promoting the financial stability and sound supervision of cross-border insurance operations for the benefit and protection of consumers.
“We are glad to welcome California, which is the largest insurance marketplace in North America, and Virginia as signatories to the MMoU,” said Mr. Braumüller. “The global insurance marketplace in which we operate demands an insurance supervisor with the ability to cooperate quickly and effectively for the benefit of consumers. The MMoU is an essential regulatory tool–not only in crisis situations, but on a day-to-day basis–for supervisors to foster safer and more stable insurance markets, and the IAIS encourages each of its Members to become a MMoU signatory.”
Previous MMoU signatories include, among others, Australia, Austria, Bermuda, Canada, Chile, Connecticut (USA), Chinese Taipei, France, Germany, Hong Kong, Japan, the Netherlands, Qatar, Singapore, Switzerland, the United Kingdom and Washington state (USA).
The IAIS is a global standard setting body whose objectives are to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders; and to contribute to global financial stability. Its membership includes insurance regulators and supervisors from more than 200 jurisdictions in nearly 140 countries. More than 130 organizations and individuals representing professional associations, insurance and reinsurance companies, international financial institutions, consultants and other professionals are Observers.
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